Ryanair 2006 Annual Report Download - page 63

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21 PENSIONS (Continued)
The fair value of the plans’ assets at March 31 is analysed as follows:
2006 2005
000 000
Equities 20,147 14,359
Bonds 2,469 2,498
Property 1,012 684
Other Assets 1,062 1,044
Total fair value of plan assets 24,690 18,585
The plans’ assets do not include any of our own financial instruments, nor any property occupied by, or other assets used by us.
The expected long-term rate of return on assets of 6.61% for the Irish Scheme was calculated based on the assumptions of the
following returns for each asset class: Equities 7.25%; Bonds 3.75%; Property 6.25%; and Cash 2.25%. The expected long-term
rate of return on assets of 6.93% for the UK Scheme was calculated based on the assumptions of the following returns for each
asset class: Equities 7.25%; Corporate and Overseas Bonds 4.90%; UK Government Bonds 4.20%; and Other 4.25%.
Since there are no suitable Euro-denominated AA rated corporate bonds, the expected return is estimated by adding a suitable risk
premium to the rate available from Government bonds. The assumptions are based on long-term expectations at the beginning of
the reporting period and are expected to be relatively stable.
The history of the plans for the current and prior period is as follows:
2006 2005
History of actuarial gains and losses; 000 000
Difference between expected and actual return on assets 3,530 952
Expressed as a percentage of scheme assets 14% 5%
Experience gains/(losses) on scheme liabilities 63 (242)
Expressed as a % of scheme liabilities -(1%)
Total actuarial gains/(losses) 2,658 (3,419)
Expressed as a % of scheme liabilities 8% (12%)
In accordance with the transitional provisions for the amendments to IAS 19 in December 2004, the disclosures in the above table
are determined prospectively from the 2005 reporting period.
We expect to contribute approximately 1.3m to our defined benefit plans in 2007.
(ii) Defined Contribution Schemes
We operate defined contribution retirement plans in Ireland and the UK. The costs of these plans are charged to the consolidated
income statement in the period they are incurred. The pension cost of these defined contribution plans was 1.4m in 2006 (2005:
1.5m)
(Continued)
Notes 63
ANNUAL REPORT & FINANCIAL STATEMENTS 2006